Leaders take a part of profits as compensation and bonuses, but employees get a pittance.
Shareholders invest money in companies and get a small part of the profits, if any, as dividends that are taxed.
Market cap is determined by share value, and that is not constant.
But corporates run operations on debt.
Banks lend debt to corporates out of depositors’ money and remove NPAs from the balance sheet.
Every shareholder carries debt on behalf of the company, more than what they get as returns.
Similar to every citizen carrying debt on behalf of the government.
Governments and corporates work the same way: pass on debts and revel in achievements and misadventures!
Familiar truths, yet the process goes on; we call it business growth and economy!
THE PULSE by Sivakumar Gopal 